Reservoir is the best infrastructures for save the water resources and has to play more roles in flood control. Flood limiting water level (FLWL) is an effective and value approach to provide safeguards the people from flood caused suddenly without any intimation. The proposed system acts as an alert to people when the water level increases from the normal capacity. Advanced sensors are used to identify the level of water presented in dams, lakes and heavy water storage areas.Flood observatory system is a system which consists of a microcontroller unit– ATMEGA328P, Ultrasonic sensor, Water level sensor, HC-05 Bluetooth, RS-232 USB to TTL Cable, 12V DC Motor and LCD to display when the water level will have increase or decrease values. During the abnormal water level condition of the reservoir, the proposed system automatically switches ON the shutter and releases the excess water. Ultrasonic sensor and Water level sensor are used to monitor the flood level conditions. The Flood Observatory System is fully automated device which is capable of operating without human intervention at any time regardless of the location being installed.